Skip to main content

tv   Mad Money  CNBC  February 10, 2012 11:00pm-12:00am EST

11:00 pm
i'm jim cramer, and welcome to my world. >> you need to get in the game! >> firms are going to go out of business, and he's nuts! they're nuts! they know nothing! >> i always like to say there's a bull market somewhere. and i promise -- >> "mad money." you can't afford to miss it. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you some money. my job is not just to entertain you but to educate you. so call me at 1-800-743-cnbc. look, we've got to wait on this greece thing. i'm not going to start telling you about the game plan and just act like nothing matters on a day where the averages were pummeled, dow sinking 89 points, s&p giving up .69%, and the nasdaq falling .8%. worst day of the year. without saying that greece is
11:01 pm
indeed back on the griddle. and i don't like the taste of it one bit. everyone says the greeks will eventually have to except the german deal because the alternative's so horrible. and i'm getting actually a little worried. you know what? i actually get defcon worried. like in defcon 2, where we've been waiting for this deal. because when everybody is on one side of the boat, funny thing, the boat may tip over. i have to tell you, i actually believe there could be a really heavy sell-off if greece goes under and out of the euro and perhaps the european union altogether. and going into this week, i thought that was a very low possibility. but now you know something? after the last 48 hours i think there's a 30% chance that the greeks are kicked out. the whole world is now fed up with greece. and there's a real chance that the greeks will back themselves into a corner they can't get out of. they have lied and lied to the leaders of the eu. and while i know they're experiencing a lot of hardship, the lies have finally caught up with them. and the germans will no longer tolerate any phony deals with this country.
11:02 pm
we might look back and say you know what, it was much ado about nothing last week, the greek deal held up, it's all hunky-dory, what was cramer fretting about. to which i say terrific. but can i at least wait and see? still, all that said, when it comes to this market, greece is not the word. and once the big bad event is out of the word either with a positive or negative resolution, i'll most likely be thrilled to have it behind us. while others will then fret about portugal, i'll be looking to buy american stocks, particularly the regional banks as well as multinationals without a lot of european exposure. so the whole week will be colored by the usual european union chatter, starting with sunday's greek vote and then focusing around talks that should bubble up on wednesday until we get more clarity, you know what? we've got a big sell-off on monday or tuesday, you can buy small. but anything big, that's a mistake. using the european prism, yep, it's back again where we are, here's what we're looking at. all right. first, monday, masco, the housing play. think kitchen and bath fixtures. i think housing is on the mend
11:03 pm
in this country, particularly after the foreclosure deal yesterday. and this stock's a couple bucks off its high. let the bears claw at it because you shouldn't be buying masco for this quarter. it's a play on the second half turn. and i like it. but i'd like even more of it if it were lower. tuesday we're going to be -- this is it. the first quarter we're going to hear from michael kors. it's a red-hot apparel ipo that could be a terrific one, a la ralph lauren and coach. but the valuation here is awful. let's see if kors sells off when it reports before the open, and you get a chance to pick up a new long-term story that is still in its infancy. we will also hear from zynga on tuesday, the social gaming company. will it be like the hideous groupon, an overvalued wild card, a company that seems totally unseasoned? or will it be like linkedin, which delivered a masterful quarter and while overvalued has a level of momentum that is loved by the high-growth mutual funds? unfortunately, i think it's a groupon. i'm a seller.
11:04 pm
wednesday's eu day. this will be the first day we have some real clarity, although you know in europe even clear is murky. that's why we've got to pay close attention to the great american companies reporting on wednesday, whose stocks could be potentially trashed through no fault of their own. companies like deere, a name that my charitable trust owns, which always does such a horrible job on its conference call and then levitates a couple days after its self-hammering. or a company like devon, which is a terrific oil company. theme brought down by its natural gas exposure. i'll listen to both and opine that night. acting before then, it might just be too risky. now, you know me. i am a bit of a gold bug. and the best of the best, goldcorp, reports wednesday night. gg. remember we used to call it gg? they need to bounce back from an uncertain 2011. so let's take a listen. i'm sure you'll hear again just how hard it is these days to get the yellow metal out of the ground, one of the reasons why it stays so expensive.
11:05 pm
thursday we hear from one of the biggest disappointments of this era, general motors. they scrubbed the books. they took out the costs, made a new labor deal. they've revamped the product line, all before they brought it public. and now almost everyone's still got a colossal loss. i think that gm has no idea how to deal with wall street. europe will be week. thank heavens they told the journal that this week. they do, they'll have a big chinese business. and let's just say if china is going to cut rates and the expectations for europe are all wrenched out, then if it gets to 22, i might tell you to buy it. we've got vf corp. on thursday, too. this is a special situation. this stock has roared back. because why? because of a great company viewed as its sister play, ralph lauren. it's too early to have north face the key division blow away the numbers. and vf has a big european business. so does ralph lauren. i'm more concerned about vf. stock hs a huge run.
11:06 pm
this is a new one, because people know i like this company. but i'd rather take profits ahead of the quarter. perhaps here. really gets hammered and we like it anyway, maybe we come back to it. friday brings us two food stocks that i'm on the fence about. campbell's soup and heinz. i keep thinking about irwin simon, the excellent ceo of hain celestial, what he told us, which is that anything in a can is now perceived to be unhealthy, or at least passe. and is campbell's ever in a can. heinz? here you have currency risk, commodity risk, and european risk. the one thing you don't have with heinz, though, is that it has 57 varieties. same age as me now. anyway, it's not cheap. i need to see this 3.7% yielder trade down to where it yields more than 4% before i get interested. finally next week we've got an ipo, and i am incredibly interested in it. it's called bright cove. it's a video platform that makes internet video tv look as good as actual tv. we know that akamai reported a terrific quarter, also withstood the downturn today.
11:07 pm
we know the web's day has come. so i think brightcove, a morning stanley deal, will be one you have to participate in if you can get shares. speaking of morgan stanley, don't forget they have the facebook deal, too so it doesn't hurt to work with them ahead of it. we've been up practically in a straight line all year. we've had a fantastic run. that means the bottom line remains that greece is a real issue, don't ignore, it one that can go wrong to the point where we give up some of these bountiful gains. so let me give you three stocks you can watch to measure the pain. the fxe, the euro proxy which must stay above 130. went out today at 1313918. if we're going to feel confident that europe won't have a hugely negative impact on our market, then currency matters. many of our multinationals like a heinz get hurt by a severely declining euro versus the dollar. second keep an eye on caterpillar which even though it's hardly levered to europe versus the rest of the world nevertheless trades with it. cat's had a terrific run. that could color the whole market. finally, here's a new name in terms of greece.
11:08 pm
i want you to stay on the wells fargo case. it has zero european exposure, but it can be brought down by the xlf, the exchange traded fund that encapsulates the financials, of which wells fargo is the dominant entry. people short the xlf, knocks down wells. after the foreclosure deal i think this one's a buy if it gets brought down by greece. in fact, wells fargo's probably the single best test of how well our markets are going to weather the trojan horse that never seems to stop plaguing us. it's what i will urge you to buy if we get any resolution either way by this time next week. let's go to mark in arizona. mark. >> caller: hi, jim. a big boo-yah to you. this is mark from tucson, arizona, formerly from washington crossing, pennsylvania. >> down the block from me, chief. what's going on? >> caller: yes. with all that's going on in europe, what is your take on total? tot. >> i like total very much. this is an underestimated
11:09 pm
company. it's very well run. has a lot of mideast exposure which worries people. yields 5.5%. total, it's for me. how about stafford in oregon? stafford. >> caller: hey, jim, how are you today? >> i'm real -- it's a good day. how about you about there, buddy? >> caller: hey, good, thanks. my question is regarding google. i read yesterday that they're coming out with an entertainment system. i was wondering how this would affect their stock. >> i think that google has become a press release company, or at least a story company. i like earnings. i don't like these announcements. announcements don't cut it from me unless they're from apple and it's a real improvement. i'm saying google, it's not my favorite. you know that after the last quarter. if you ever want to schnitzel a little google, take it off the table, i'm all for it. once the big bad event of greece is out of the way i'll be thrilled to check out american stocks. until then do you mind if we wait and see? "mad money" will be right back. >> announcer: coming up, hack attack. from bank accounts to credit cards to e-mail, more parts of our lives are online and at risk
11:10 pm
of being hacked. cramer's seeking a cyber security spec stock that can help protect your portfolio. and later, battle of the beds. cramer rarely gets shuteye. but tonight by request he's finding out which mattress maker could help you build a portfolio of your dreams and wake up with "mad money." all coming up on "mad money." [ malthe day starts with arthritis pain... a load of new listings... and two pills. after a morning of walk-ups, it's back to more pain,
11:11 pm
back to more pills. the evening showings bring more pain and more pills. sealing the deal... when, hang on... her doctor recommended aleve. it can relieve pain all day with fewer pills than tylenol. this is lois... who chose two aleve and fewer pills for a day free of pain. [ female announcer ] try aleve d for strong all day sinus and headache relief.
11:12 pm
11:13 pm
on a hideous day that was reminiscent of last year's ugliness, a day when we were brought low by greece again, i need to remind you that this pullback is the exception in 2012, not the rule. this market's been on a remarkable tear. and while we were due for some kind of sell-off, i just don't believe that it's going to be
11:14 pm
derailed by the idiocy in athens. unless greece exits the euro. something that could occur. and i admit to being on edge about. otherwise, there's just too much good news going on here at home to cause me to forget about this market. last year when the averages started plunging you had to get out because they were only going to fall some more after they'd plunged already. that's now abnormal. in a healthy market you use pullbacks as buying opportunities, and as hard as it may be for some of you to believe, this market is now pretty darn healthy. that's why tonight i feel i have to accentuate some of the positives and focus on an area that's going to be red hot regardless of what happens in europe. a long-term theme that's still in its early innings. even as it has already given us big multiyear gains. i'm talking about cyber security. the need to protect your precious data from viruses. and especially hackers. who would love to get their hands on all sorts of personal information that's now stored in the computers around the world.
11:15 pm
right now the senate is working on a big cyber security bill. that senate bill should come out sometime next week. and even though we've gotten used to the permanent state of gridlock in washington, this is one of the few issues where there's actually fairly broad-based bipartisanship. the legislation would require companies to take appropriate precautions against online threats. with the homeland security department empowered to enforce the law. and it's not just the federal government. states all over the country have been passing data security laws with tighter compliance requirements. but next week the senate, hey, that's a catalyst. even without washington, though, firms would still be spending money to protect their networks out of pure necessity. for many companies stopping hacking has become just a cost of doing business. and protect the privacy of their customers is now essential to protecting their reputations. but the reason cyber security is such a great business is hackers get more sophisticated by the day.
11:16 pm
they are relentless. they are tenacious. that's why these days companies need to be able to detect threats that are hidden within legitimate content, even from trusted sources and authorized applications. think about it p. over the last decade the entire nature of cyber security has changed. you don't need to just protect yourself against malicious e-mails. now you have to deal with threats that can come at you through the least -- through the latest social networking tools. they can come at you through twitter or facebook. i got hacked terribly two weeks ago. just a miserable experience. traditional security technologies simply haven't been able to keep up. they often can't tell the difference between malicious and legitimate content. and that's where cramer speculative fave fortinet, ftnt, comes in. ftnt. they are the dominant provider of what's known as unified threat management technology, a comprehensive integrated suite of cyber security products and services that provides unmatched
11:17 pm
protection, allowing their clients to detect and eliminate complex threats without totally locking down their systems. look, the idea here, rather than buying your firewall from one guy, your anti-virus software, or a.v. as i know they call it after i got hacked, from another, your web and spam filtering from a third and so forth, fortinet offers the whole suite. the network security package. which is cheaper than buying each component individually and also makes it easier for companies to comply with federal and state data security regulations. by the way, i got this one from the very smart bryan ashenberg. my colleague at thestreet.com. he runs a terrific breakout stocks newsletter. told me about this one. might be smaller than the big dog networking space cisco and to a lesser extent juniper as it has market capitalization of just under $4 billion. but it this company is a pure play on market security, one that's managed to become the market leader in its niche. make no mistake, unified threat management is a terrific niche
11:18 pm
to have. it's the fastest-growing segment within the entire network security space. it should be a $3.2 billion business by 2014. and fortinet controls 17% of the market. the market share is growing even though you've probably never heard of them and they are quite simply the best at what they do. why do you i feel that way? how about this? 8 of the top 10 fortune companies use fortinet. 9 out of the top 10 in europe. every single one of the top 10 telecommunications companies. 9 of the top 10 banking companies. and these are the firms that really need to protect their networks. however, there is one problem with cyber security likes fortinet, and it's kind of a big one. i'm not the first guy to recognize this. they've had a truly massive run. fortinet is up an astounding 208% since it went back in november 2009. and they almost always seem way too hot to touch. you look at fortinet selling for 43 times next year's earnings, 21% growth rate, and you just want to take a page from stock sage snoop dogg and, yes indeed, drop it like it's hot. my rule of thumb is you that typically don't want to buy own
11:19 pm
the best growth stocks when they're selling for more than two times growth. and that's exactly unfortunately where fortinet is right now. but when the economy's doing okay you almost never get a chance to buy these cyber security stocks at a price that seems cheap. you have to wait for a marketwide pullback, like the kind we're witnessing right now, and use that to buy some at a mild discount because that's the best value you're ever growing to get with this one. we know fortinet's in fantastic shape. why? because the company just reported on tuesday of last week. and they knocked it out of the park! it was a, quite simply, beautiful quarter. it caused the stock to spike nearly 10% the next day. fortinet beat on revenues, beat on earnings, and the company raised its revenue growth forecast for 2012. more importantly, looking forward, fortinet's billings came in at much better than expected. 27% year over year. up 19% from the previous quarter. the firm revenue, an important metric, up 17%. these are all metrics that tell us how the future's looking. and the future's looking pretty
11:20 pm
fantastic. oh, so you say how about europe? europe didn't hurt fortinet at all. europe, the middle east, and asia, so-called emea, were areas of strength up 22 perts. best of all the company keeps taking share from cisco, juniper, checkpoint. fortinet's eating their lunch. and i actually think it would make a ton of sense as a takeover target for a company like cisco, giving them more exposure to the fastest-growing part of the network security business. here's the bottom line. yes, fortinet's expensive, but i think the speculative cyber security play makes a ton of sense on any pullback, like the one that began today. because its prospects are terrific. especially ahead of this legislation being introduced in the senate next week that i'm sure will have everyone atwitter about ftnt. after the break i'll try to make you even more money. >> coming up, battle of the beds. cramer rarely gets shuteye. but tonight by request he's finding out which mattress maker could help you build the portfolio of your dreams and wake up with mad money. all coming up on "mad money." i look at her, and i just want to give her everything.
11:21 pm
yeah, you -- you know, everything can cost upwards of...[ whistles ] i did not want to think about that. relax, relax, relax. look at me, look at me. three words, dad -- e-trade financial consultants. so i can just go talk to 'em? just walk right in and talk to 'em.
11:22 pm
dude, those guys are pros. they'll hook you up with a solid plan. they'll -- wa-- wa-- wait a minute. bobby? bobby! what are you doing, man? i'm speed dating! [ male announcer ] get investing advice for your family at e-trade. [ male announcer ] for our town. [ dog barks ] for our country. ♪ for our future. ♪ this isn't just the car we wanted to build. it's the car america had to build. ♪ the extended range electric chevy volt. from the heart of detroit to the health of the country, chevy runs deep. laces? really? slip-on's the way to go. more people do that, security would be like -- there's no charge for the bag. thanks. i know a quiet little place where we can get some work done. there's a three-prong plug. i have club passes. [ male announcer ] now there's a mileage card that offers special perks on united, like a free checked bag, united club passes, and priority boarding.
11:23 pm
thanks. ♪ okay. what's your secret? ♪ [ male announcer ] the new united mileageplus explorer card. get it and you're in. hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business. ♪ rock-a-bye baby ♪ on the treetop ♪ when the wind blows the
11:24 pm
cradle ♪ oh. hey. every day this week i've been taking your requests, answering the questions that home gamers like you have e-mailed and tweeted in an effort to prove once and for all that "mad money" is still the most interactive show on television. it's part of my ongoing vendetta against "american idol." and you can see your tweets gliding by in the cnbc twicker -- whatever. anyway, next up, we got a tweet from tony johnson. like my feet pajamas? it was the battle of the beds. that's what he said. tempur-pedic versus select comfort. tony, i love it. i love you. but since i never get more than four hours of shuteye a night, this is really foreign territory for this guy. that gave me a chance to do research after i woke up at 4:00 this morning. and after a non-exhaustive sleep study i came to the conclusion that the only way to resolve this is by going to the mattresses, literally. so prepare yourself for an epic mattress throwdown, a vicious bare-knuckle bed brawl between, yes, tempur-pedic, tpx, and
11:25 pm
select comfort, scss. for those of you who wonder why i like to do these one-on-one steel cage matches, it's not because i've always wanted to be a big fight promoter a la don king. that would be pretty cool especially hairwise. no, it's because it's all about being able to discern what makes one company better than the other. and showing you how two very similar players in the same industry stack up next to each other is the best way i know to teach you how to do it yourself at home in bed. with that in mind, let the face-off begin. tempur-pedic and select comfort both belong to a special high-end segment of the bed business. they're the mattress elite. most beds out there are made with inner springs. those are typically lower-end models that make up about 74% of the market. sealy, simmons, serta. while those old-fashioned mattresses might make great places to hide your money if you don't trust the banks, that is, the same can't be said for the stocks of the companies that
11:26 pm
make them. although let's be honest, they all beat the ford fairmont back seat i slept on back when i lived in my car on interstate 5 in california. however, tempur-pedic and select comfort do something different. they use proprietary technology to make premium products that have a real edge over the commoditized competition. tempur-pedic, for example, is the world's leading specialty mattress. it uses high density -- this is very similar here. high-density, temperature-sensitive, advice visco-elastic materials, memory foam. i've seen their commercials in the middle of the night. they run them perhaps to taunt insomniacs like me. select comfort you probably know from the air chamber technology it uses to make its sleep number beds, the ones where you can adjust the firmness on each side of the mattress, clinically proven to provide better sleep quality and greater relief of back pain. now, believe it or not, the
11:27 pm
mattress business is actually a pretty terrific place to be in if you've got an expensive proprietary product to offer. mattress companies have a ton of leverage over their dealers because the bedding distribution channel is highly fragmented. the typical dealer these companies work with owns an average of 2.5 stores, no more. so tempur-pedic and select comfort pretty much have them over a -- mattress? no. a barrel. plus the industry's having a bit of renaissance right now thanks to all the aging baby boomers who need specialized beds as they get older. take it from this old guy on his 67th birthday. and this business should get even better as housing turns. but which one is better? i think select comfort wins hands down. i'm going to tell you why. let's tick through the key metrics. both companies reported
11:28 pm
better-than-expected quarters recently. but select comfort's results were a lot cleaner and they gave excellent up side guidance for 2012. plus just today my friend, buddy, and network pal herb greenberg put it out there while tempur-pedic beat numbers it was a low-quality beat and not all beats are created equally. for the record, brian sullivan, co-host of "street signs," sleeps on a select comfort. he says he loves, it especially if you have a bad back. also for the record, i have no idea what kind of mattress amanda drury sleeps on. how about market share? right now tempur-pedic's in the lead but select comfort has a lot of room to grow. their market share is only about 5%. but in a number of cities they have as much as 10% or 15% share. select comfort's targeting 15% market share by 2015, and basically how they're already doing it in some parts of the country that's doable. in short select comfort would
11:29 pm
triple their market share and that gives them a lot greater run growth. at 11% of sales versus just 6% for tempur-pedic. that's a big deal. because the margins on direct sales are a lot higher than mattresses sold through a third-party retailer. what about comps? remember we have to go through all these different metrics. last year tempur-pedic rose 14% on units sold. that's good. but select comfort posted an even better 31% increase driven by 16% more mattresses sold. last year tempur-pedic's gross margins came in at 52%, not bad. select comfort already has the higher gross margin. 62.9%. and they expect it to increase by another two to three percentage points through 2015. plus there are a lot of worries that tempur-pedic's rolling out lower priced new products that could cannibalize existing product lines and put a real dent in their margins. score another point for select
11:30 pm
comfort. and select comfort wins on geography too. they have zero exposure to europe. tempur-pedic, on the other hand, it gets a little less than a third of its sales from overseas. and europe represents 2/3 of their international business. last and most important, though, select comfort simply has a much larger growth opportunity. see, tempur-pedic is already in about 78% to 88% of the 8,000209,000 bedding stores they're targeting in north america. although internationally they've still got some room to expand. select comfort is doing something different. they're opening their own retail stores that sell only their product. right now the company has 375 locations, and they plan to open 20 to 30 more. not only will this expand the
11:31 pm
company's sales, but they'll also be more profitable because it cuts third-party dealers out of the mix. select comfort beats tempur-pedic on every metric that counts. yet the stocks are valued practically at the same levels. tpx sells for 18 times earnings, 16% growth rate. select comfort sells for 22 times earnings. but wait a second, doesn't mean more expensive. that's a 19% growth rate. select comfort trades at 1.3 times growth. only slightly higher. but it deserves to trade even more premium. here's the bottom line, when it comes to the mattress melee i would throw away your tempur-pedic, get back in bed with select comfort. much better buy. although if you want to sleep without worry about your portfolio, as much as select comfort intrigues, let's not be blind to the situation. it's good stocks with big dividends that let you catch the best zs. oh. questions? okay. let's go to aaron in texas.
11:32 pm
aaron. >> caller: hey, jim, i've got a lone star state boo-yah to ya. >> lone star right back at you, chief. >> caller: hey, i want to ask about williams-sonoma. after doing my homework last september i added them to my portfolio. i'm considering adding my position with the recent pullback, but i'm concerned. i'm concerned that the stock, they're capable of such a big out of nowhere correction, especially with strong q3 numbers and relatively good holiday numbers. >> well, iron, look, i've got to join you in that. see, i have a rule. when you miss like they did, you've got to wait a full quarter. they are in the penalty box. i'm not saying it's a major. it's like a two-minute minor. but we have to find out more. and i think you and i have to stay on the sidelines until we see the next williams-sonoma quarter. if it improves we can jump in. believe me, it won't run away from us. let's go to joe in california. please, joe. >> caller: hey, a big happy b-birthday ba-ba-boo-yah. >> how did you know there, partner? >> caller: from san diego, california. >> i'm between 5 and 7. >> caller: i love your show. i love your passion. i've got to tell you, it's contagious. >> really?
11:33 pm
i'm the midwest distributor. go ahead. >> caller: well, listen, i was lucky enough to get into huntsman under $10. >> oh, man. >> caller: i was ready to ring the register but heard you mention takeover. so how would you -- >> after lion dell blew up today, it didn't hurt the stock that badly, i say huntsman's got to go. ring the register monday morning. be thrilled. don't look back. go buy yourself a beautiful cashmere sweater and tell them cramer sent you. i'm not going to put you to sleep, but i will tell you to get in bed with select comfort. oh, yeah, i guess i have to say stay with cramer. but you know what? have some zs with me. i'll see you in a moment. ♪ i'm-a put you to bed
11:34 pm
11:35 pm
11:36 pm
11:37 pm
it is time! it is time for the "lightning round" on cramer's "mad money." what's that about? you say the name of the stock, i tell you whether to buy buy buy or sell sell he will. my staff prepares the graphics on the fly. we play until we hear this sound [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round" on cramer's "mad money." brandon in florida. >> caller: rainbow! >> i like how you're fired up for the weekend. let's go to work together. >> caller: i'm here with my good friend matt stone. we've been reading a lot. >> oh, yeah. >> love you, matty, what's going on? >> caller: production of solar panels going up a lot. a lot of bug buying by the big financial firms and we love the idea of being green and investing. tsl. trina solar. >> i'd rather invest in trini lopez than trina solar. i mean, that is young of the worst -- that and ying ling. i'd rather be in yung ling than ying ling. and for the record i like pbr. terry in month mop. >> caller: hi, jimmy, big
11:38 pm
birthday boo-yah to ya. >> i appreciate it very much. what's going on? >> caller: i'm calling from zoltek. >> that one's already had its run. you're johnny come lately. kevin from connection texas. >> caller: sick 'em baylor bears-b actually happy birthday, jim! >> thank you, partner. what's going on with you? >> caller: affymax. >> a little earnings. a lot of negativity brewing here. let's go to dave in connecticut. dave. >> caller: yes, boo-yah, jim. how are you? >> real good, thank you. how about you, dave? >> caller: pretty good, thank you. calling from sunny, snowless ellington, connecticut. >> man, how's the powder up there? >> caller: there you go. we're about 20 minutes from uconn. the reason i'm calling, i want to thank you, first of all, for your schooling. you go from investment 101 up to
11:39 pm
999. you give us clues. and it's fantastic. >> thank you. >> caller: yep. danaher, dhr. >> solid, good blood lines. if greece pulls us back down and people start talking about how that chart looks like a head and shoulders, i'm a buyer, not a seller. well-run company. how about richard in new york? richard. >> caller: happy happy birthday cramer. dsw shoes. >> oh, discount shoe warehouse. this is an unbelievably good company. incredibly well run. it's got mojo. it reminds me of ross stores, which is also doing incredibly well. and tjx, charitable trust name. actionalertsplus.com. how about charlene in wisconsin? >> caller: boo-yah. oh, yeah, from the midwest. wisconsin, best spot in the midwest. intuitive surgical. >> it's a $495 stock, people get intimidated. if it was $49.50 i'd tell you it's going to 55.
11:40 pm
>> buy buy buy! >> earnings are really good there. let's take one more. eyes nic my home state of pennsylvania. isaac. >> caller: yeah, how are you doing, jim? >> i'm doing real fine there. how about you, chief? >> caller: okay. i'm an expatriate from new york. but i've been out here for about 13 years. >> can't beat that. >> caller: okay. anyway, my question today is about the timken company. tki. >> a great american companies that makes ball bearings. it has had a big run. it can trade to the 40s. and that's where i want to buy it. and that, ladies and gentlemen, is the conclusion of the "lightning round"! ♪ that first day i helped handle an order -- okay. i answered the phone. >> buy me a million shares of daimler --
11:41 pm
>> it was trading at 26. what the heck did he want to buy it at 27 for? this guy's a stooge. bozo. he said. because indeed i wore my hair even more like bozo then than i do now. >> how could you not know bozo the clown? >> i don't know. i just don't. >> i think he would have thrown the phone at me if it weren't tethered to the desk. >> you're hung up on some clown from the '60s, man! >> announcer: and now this week's installment of "jim cramer explains twitter." >> the twicker! >> oh, yeah. >> hashtag. >> announcer: thanks for tuning in to this week's edition of "jim cramer explains twitter." >> i got so disgusted this morning i went to the one person, the one person, my go-to person who i knew would listen to me. i knew would take me seriously. i knew would agree with me siri. >> oh, no, not this again. >> i said, siri. how high?
11:42 pm
how high do you think apple's going to go? where's siri? she doesn't like to play in this room. siri, where were you when i needed you? >> this guy is unreal. >> i know a lot about insanity. so does siri. >> let me just say she has no morning breath. [ crickets ] >> okay. >> siri really knows how to please a guy. >> i'm sorry. i didn't catch that. i'm sorry. i don't understand. what a jerk. like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering, web-based trading platform. trade commission-free for 60 days,
11:43 pm
and we'll throw in up to $600 when you open an account. trade commission-free for 60 days, the two trains and a bus to the 5:00 arider.holar. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be. ♪ because your moment is now. let nothing stand in your way. learn more at keller.edu. [ male announcer ] even if you think you can live with your old mattress... ask me how i've never slept better. [ male announcer ] ...why not talk to one of the 6 million people who've switched to the most highly recommended bed in america? it's not a sealy, a simmons, or a serta. ask me about my tempur-pedic. ask me how i can finally sleep all night. ask me how great my back feels every morning. [ male announcer ] did you know there's a tempur-pedic for everybody? tempur-pedic beds now come in soft, firm,
11:44 pm
and everything in between. ask me how i don't wake up anymore when he comes to bed. [ male announcer ] these are real tempur-pedic owners. ask someone you know. check out twitter or your friends on facebook. you'll hear it all, unedited. ask me how i wish i'd done this sooner. ask me how it's the best investment i've ever made. [ male announcer ] tempur-pedic brand owners are more satisfied than owners of any traditional mattress brand. ♪ to learn more or find an authorized retailer near you, visit tempurpedic.com. tempur-pedic. the most highly recommended bed in america. [ malthe day starts with arthritis pain... a load of new listings... and two pills. after a morning of walk-ups, it's back to more pain, back to more pills. the evening showings bring more pain and more pills. sealing the deal... when, hang on... her doctor recommended aleve. it can relieve pain all day with fewer pills than tylenol. this is lois... who chose two aleve and fewer pills for a day free of pain.
11:45 pm
[ female announcer ] try aleve d for strong all day sinus and headache relief. before we get to mail, got to take care of some quick housekeeping. back on january 11th, yeah, i tell you, it's been building up, john in new mexico asked me about kit digit, kitd, a small cap check company that's a cloud-based management play. helps clients enable socially enabled video to audiences anywhere on multiple screens and devices. a lot of buzz and a lot of buzz in tech right now. but i'm concerned because it's rupp up 45% so far this year and
11:46 pm
there's this sky-high short interest at 66% of the shares outstanding. if you own it, you know what? it is time to ring the register. take home your gains. next up, on january 18th, dave from west virginia asked about c & j energy services, cjes. it's a pure play on the domestic onshore pressure pumping market. this one's down 45% from where it came public last july. thanks to ultra low natural gas prices and the reduction in drilling they're inspiring. c & j energy looks incredibly cheaper, selling for about four times 2012 earnings estimates. people don't think those numbers are going to be made. but if the regulators ever decide to cut down on fracking this one's toast and of course it's got way too much exposure, yes, to the natural gas industry, which is cutting back on drilling furiously. there are so many other oil service names out there that i prefer over this one. schlumberger. even after their recent runs. they have much more exposure to natural gas and much less to oil particularly in international markets. then on january 19th janice from florida asked me about a tiny biotech firm that develops and sells specialty drugs that
11:47 pm
hospitals use to treat serious infections. key drug this past july difisid which is co-marketing with a very hot stock, cubis pharma. recent data is strong. i think there could be up side based on label expansion. the stock hasn't run too much. and i think it's an interesting speculative play on treating hospital-based infections, which are a real problem in the health care biz. but it's for speculation only. be sure to use limit orders, not market orders. on january 25th, irving in california asked me about massimo. not the jeans company. mosi. a leading maker of pulse oximetry devices. which are used in emergency room departments. with new product launches, an uptick in surgeries and a reasonable valuation 2012 could be a good year for this stock. however, this is a distinctly second half story. right? the first half of the year is likely to be challenging for massimo. so i wouldn't buy it until we get a pullback since there's absolutely no rush.
11:48 pm
for now the thing to do, how about nothing? then on january 26th richard in virginia called me about a stock i'm asked about a lot of times on the street. ziopharm oncology. teency tiny super speculative biotech company. market cap of less than a million. i don't like to talk about the real small guys. no drugs on the market. developing a drug for fighting cancer. has a promising treatment for soft tissue sarcoma and it is in phase 3 development. last phase. i have a lot of caveats here. since you're basically playing fda roulette with this one, you know i don't like that game, stock is totally dependent on binary fda decisions. proceed with caution. maximum homework. not for the faint of heart. finally on january 30th casey from oregon asked me about guidewire. gwre. which sells enterprise software and services to property and casualty insurers. guidewire's a fresh-faced ipo
11:49 pm
that just came public on january 25th at $13 a share. it jumped 32% on its first day of trading. it is now up 69% from where it came public. if you own it, sorry, ring the register. amazing move. anything else is pure greed. you want to buy it, you've got to wait for a better entry point because chasing the stock at these levels, i'm calling it absurd. all right. now, let's go back and do some more requests, some mail and some tweets. why don't we start with a tweet? burn underscore generous writes @jim cramer, "what's holding nvidia down?" strong margins, growth positioning, hashtag "mad money," hashtag b-day, hashtag heinz 57. all right. here's what's holding it down. nvidia, you know i like the stock very much, but it's been a battle royal with another company, rambus, and then intel's supposed to be attacking it. it's attacking intel. there's a lot of worry about price competition.
11:50 pm
it's involved with gaming. i say hold on to it, but it's a wild ride. i think it's very cheap. we had the ceo on last year. and i think he tells a great story. the stock's done nothing lately. that doesn't mean it can't go higher. we did tell you to buy it last year. two years ago between 9 and 11. then went up to the 20s, told you to ring the register. it's falling back and we like it again. here's one from -- some of these are very difficult because you can't tell if it's -- you have to run things together in tweet. this one frs -- first i was going to say thomaskling. but i think it's now thomaskling 29. what is the outlook for nuance? when apple comes out with another ipad. everyone has been buzzing about nuance because they thought it was a siri play because you thought it was some arrangement, you never know the terms with apple, with siri. i have a relationship with siri. she wished me a happy birthday last night. i was touched. but you don't want to be in nuance because it has a lot of other business. enterprise software. i'm not a buyer of nuance, i'm a
11:51 pm
seller of nuance, but i am a buyer of siri. "mad money's" back after the break.
11:52 pm
11:53 pm
the second guessers came out in full force today. among the fabulous birthday wishes i've received on twitter were a half dozen critics
11:54 pm
blasting me for being bullish right into the sell-off, blaming me for killing retail investors by being so upbeat. given my current incarnation as a diplomat and elder statesman, i was reluctant to say -- really to tell these naysayers what i truly think of their so-called analysis. but you know what? hey, what the heck? it's my birthday for heaven's sake. i'll just tell you like it is. the idea that it's been wrong to be bullish because of today's sell-off, well, that's the height of idiocy. there are only a few periods each year where you get to make good solid money, and you've got to be in stocks in order to catch them. sometimes that means also being in for a downturn. but so be it. what are you supposed to do, stay short every single day? take the beating every time the market goes up? and then cash in on a bad day like today? do you think that's possible? i mean, are you supposed to stay out of the market during a magnificent run just because of the obvious prospect of a down day occurring? should we have shunned the incredible rally since the beginning of the year in order to avoid getting hit for a couple percentage points' worth
11:55 pm
of declines? it's just not possible to flit in and flit out that quickly. nobody's that good. secondly and more important, i did not and have not led anybody to the slaughter. last i looked, hey, if somebody bought, say, jcpenney at my suggestion in the low 30s, they're now tree to sell it at 42. i'm not keeping them in. even if it's down a dollar. or consider those pour souls who bought chipotle on my say-so and are now down a couple bucks from the high. what about the 300 points you made in chipotle on the way up? look, i think it's really important to recognize that you're allowed to sell a stock whenever you want anytime, even if i suggested it. you can sell a stock down three points, four points, ten points from the high and not feel like you've somehow been slaughtered as long as you bought it even lower. finally, and this one takes the cake, so i'm reading last night. i'm reading tweets that say not only was i having a domino's pizza, half plain, half no cheese, out with my daughter. and we're reading them, the tweets, and it says not only did i lead lambs to the slaughter
11:56 pm
but i also somehow kept people out of apple, a stock i'd mentioned practically every night that my charitable trust owns during the magnificent run i kept you out. and wait a second, i did indeed suggest that apple couldn't be as good without steve jobs as it was while he was still around. i said it would not be an ordinary stock. trading on the fundamentals like all of the stocks. even as the fundamentals are great. and no longer anticipating any wondrous inventions from steve jobs out five or ten years. last night i'm looking at twitter with my daughter. she first turned me on to apple years ago when he she asked for a second ipod because she needed a pink one to augment her steel blue device because dad, it's a fashion accessory. she read the criticism, and she said, is this guy an idiot? does he really think that apple can be as good without the genius behind apple? you know what? enough said. stay with cramer.
11:57 pm
♪ a refrigerator has never been hacked. an online virus has never attacked a corkboard. ♪ give your customers the added feeling of security a printed statement or receipt provides... ...with mail. it's good for your business. ♪ and even better for your customers. ♪ for safe and secure ways to stay connected, visit usps.com/mail [ female announcer ] these are the crescents you love on a holiday.
11:58 pm
and these are the ones you'll love on a school night. pillsbury ham and cheese crescents. with just a few ingredients, you have an easy dinner. pillsbury ham and cheese crescents. school night ideas made easy. get on e-trade. set up a real plan. frank! oh wow, you didn't win?
11:59 pm
i wanna show you something... it's my shocked face. [ gasps ] [ male announcer ] get a retirement plan that works... at e-trade. twitter @jimcramer. everyone's telling me forget about greece, jim, don't even talk about it. look, there are two greeces. there's the greece where the deal works and everything will be fine, it will be a great buying opportunity, and then there's the deal that doesn't work and greece is kicked out. and then we're going to have a severe decline. do you mind if i wait a little

172 Views

info Stream Only

Uploaded by TV Archive on